Rivian Automotive, Inc. / DE (RIVN) Stock Analysis
Rivian Automotive, Inc. / DE (RIVN) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
Rivian Automotive, Inc. / DE faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | -30.5% | Below expectations |
| FCF Margin | -46.2% | Cash flow pressure |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Rivian Automotive, Inc. / DE: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Rivian Automotive, Inc. / DE earns -30.5% ROIC
Rivian Automotive, Inc. / DE's trailing-twelve-month ROIC of -30.5% (sector median: 7.3%), driven by NOPAT margin of -66.7% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-11-04. Gross margin of 2.7% with operating margin at -66.5% reflects a competitive pricing environment.
| Metric | RIVN | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -30.5% | Red flag | Below sector median of 7.3% |
| Gross Margin | 2.7% | Warning | Competitive pricing environment |
| Operating Margin | -66.5% | Warning | Moderate operational efficiency |
Cash Flow: Rivian Automotive, Inc. / DE generates $-2.5B FCF at -46.2% margin, positive NaN/8 quarters
Rivian Automotive, Inc. / DE generated $-2.5B in free cash flow (TTM), a -46.2% FCF margin. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | RIVN | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -46.2% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-2.5B | Red flag | Cash burn |
| OCF/Net Income | 0.2x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for Rivian Automotive, Inc. / DE
Net cash position of $1.6B provides financial flexibility. Source: 10-Q filed 2025-11-04.
| Metric | RIVN | Rating | Context |
|---|---|---|---|
| Net Cash Position | $1.6B | Excellent | Net cash positive |
Valuation: Rivian Automotive, Inc. / DE trades at -6.4x earnings
Rivian Automotive, Inc. / DE trades at a P/E of -6.4x. Free cash flow yield of -10.6% reflects market expectations for growth.
| Metric | RIVN | Rating | Context |
|---|---|---|---|
| P/E Ratio | -6.4x | Red flag | Reasonable valuation |
| EV/Sales | 3.8x | Good | Growth premium priced in |
| FCF Yield | -10.6% | Warning | Lower cash yield |
Capital Allocation: Rivian Automotive, Inc. / DE returns 0.0% shareholder yield
Rivian Automotive, Inc. / DE's total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-04.
| Metric | RIVN | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -30.5% | Bottom 10% | -4.2x below |
| Free Cash Flow Margin | -46.2% | Bottom 10% | -9.8x below |
| Gross Margin | 2.7% | Bottom 10% | 0.1x below |
| Operating Margin | -66.5% | Bottom 10% | -8.8x below |
Financial Scorecard
| Metric | RIVN | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -30.5% | Red flag | Below cost of capital |
| Free Cash Flow Margin | -46.2% | Red flag | Thin cash margins |
| Gross Margin | 2.7% | Red flag | Bottom 10% of sector (median: 33.1%) |
| Free Cash Flow Yield | -10.6% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is Rivian Automotive, Inc. / DE's Return on Invested Capital (ROIC)?
Rivian Automotive, Inc. / DE (RIVN) has a trailing twelve-month Return on Invested Capital (ROIC) of -30.5%. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Rivian Automotive, Inc. / DE's Free Cash Flow Margin?
Rivian Automotive, Inc. / DE (RIVN) has a free cash flow margin of -46.2%, generating $-2.5 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Rivian Automotive, Inc. / DE stock overvalued or undervalued?
Rivian Automotive, Inc. / DE (RIVN) trades at a P/E ratio of -6.4x, which is above the sector median of N/A. The EV/Sales multiple is 3.8x.
Q: What is Rivian Automotive, Inc. / DE's revenue and earnings growth?
Rivian Automotive, Inc. / DE (RIVN) grew revenue by 8.4% year-over-year. Earnings per share increased by 34.9% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does Rivian Automotive, Inc. / DE compare to competitors in Industrials?
Compared to other companies in Industrials, Rivian Automotive, Inc. / DE (RIVN) shows: ROIC of -30.5% is below the sector median of 7.3% (-4.2x median). FCF margin of -46.2% trails the sector median of 4.7%. Gross margin at 2.7% is 30.4 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with Rivian Automotive, Inc. / DE?
Investors in Rivian Automotive, Inc. / DE (RIVN) should monitor these potential warning signs: 1) FCF margin is thin at -46.2%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.